To get around the company CAFE averages the efficient cars are sold at a loss, though balanced by the profitable trucks and SUVs. Same thing with alternative fueled cars, until that is the trucks and SUVs that were sold at a healthy profit are no longer being sold at a volume necessary to offset the losses from the fuel efficient ones. A good way to go bankrupt is to sell cars at a loss, hybrids and other fuel efficient cars will now become more expensive and thus not be as popular with the public. The very successes of these cars will cause their coming unpopularity. Not to mention the cost of maintinence.
Well... no kidding. I normally enjoy your analysis, but you are way off here. The main reason to get a hybrid isn't to save money, but better fuel efficiency is simply better for the environment, for US security vis a vie petroleum and a host of other reasons Teddy Roosevelt would have heartily endorsed. With the ability to change the environment in massive and permanent ways comes a great responsibility for stewardship. Having said that, there is an obvious energy cost to purchasing a new car, which means that an operating car within normal tolerances and performance is better for the environment than ditching it for a hybrid. Why is it that everyone talks about Prius, Prius Prius, meanwhile Honda has been quietly making two and soon to be three hybrid models for the better part of five years? Also the other analysis with CAFE and subsidizing these cars with SUV is BS, Honda doesn't make most of it's money from SUV's and extra profits from SUV's went largely to US automakers and to shareholders as dividends and bonds... carmakers don't subsidize a car price with the SUV sale... No company trades profit in that manner.
Executives at both Ford and GM have admitted that hybrids are not profitable now and are unlikely to be so in the future. Lutz of GM in CNN/Moneyline(1-12-05) said "From a strict business proposition it's not clear that you'll ever be able to recapture the cost of a hybrid in pricing". Ford's President, Jim Padilla, said "I don't think that there's a chance with the first generation product" for it(the hybrids) to be profitable, Detroit Free Press(3-1-05). While both Honda and Toyota claim to be making hybrids profitably, they can do so because Japanese accounting practices allow them to exclude the combined R and D cost of over $4 billion dollars from their costs. Somewhere in the retail price of its cars these companies are retrieving the losses caused by the construction of hybrids and using these more fuel efficient models to average out their CAFE numbers.
Apparently Anonymous didn't read the linked article. The last paragraph mentions that spending excessive discretionary income, while admirable in one sense, is misguided. That same investment would be put to much better use if given to an organization that works directly for eco-conscious efforts. It's a simple matter of results versus cost. The hybrid cars provide a very small improvement for a rather large cost.But the big question, for me at least, is why should the consumer have to be conscientiously badgered into supporting a technology that he doesn't benefit from? When the auto industry comes up with a new technology that really does make a difference at an affordable price, it'll sell without the government subsidies.Back to the drawing boards, Toyota et al.
Joe, I agree about government subsidies in that it actually detracts from the automakers incentive to make an affordable hybrid.A while ago, I spoke with technical guys from a major auto company and they derisively referred to their tiny cars as a scheme to get under CAFE standards. So everything Pat said is true.
One difference for Toyota and Honda is that the price of gas is much higher in their home market (back in April, it was over $4.25 per gallon -- so it's got to be much higher now). So that breakeven point for consumers buying hybrids is a lot lower in Tokyo than it is here in the US.
OK... Same anon here. I don't believe the problem with Detroit is that the Japanese companies are writing off R&D or whatever... American companies have consistently refused to budge environmental standards throughout history, including impassioned speeches to Congress that Clean Air Act I standards were impossible to meet. The head of Honda then testified that they could do it, without using a catalytic converter, and the Civic was born. I think the evidence is clear that Japanese automakers aren't using these cars to get around CAFE. While GM bitches and complains, they are getting 10 years of free road-R&D to perfect and try out new ideas on electric powertrains, power management, storage etc while GM fiddles itself away into legacy bankruptcy. Why are the only people who say it can't and shouldn't be done are US automakers. Consumers aren't being bullied into buying these, they have a myriad selection of comparable mileage cars that are not hybrids. A hybrid is essentially illogical, a vehicle should not have two powerplants, it is redundant, but in the interim, Toyota and Honda are going to be so far ahead of Detroit in design on these, I fear GM will exist only as retro art like Pan Am
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Dear Friend, I have got to get this off my chest before I EXPLODE... Stephan Ducharme just became a Millionaire on the Internet … in weeks!!! He went from 100 hits a day up to 1 MILLION visitors in less than a few weeks … without paying a dime in advertisement !!! … and this just paid him over 1 MILLION DOLLARS !!! He says anyone can do it with what you are about to learn. You have never heard of this thing before, Ever! "Click Here" to get Stephan Ducharme's free e-bookLet me introduce myself; My name is Jodi Hans. I've earned $30,000+ in a month, BUT IT'S ALL COME CRASHING DOWN and here's why... You may have the best program, the best opportunity in the world. The best website. It doesn't matter. YOU WILL FAIL IF YOU DONT READ THIS. For months I've been the top affiliate for tons of programs I've been promoting. In fact, many of the campaigns you've seen promoted, I've been one of the top earners. Over the past years I learned so much that I even started to coach a team of 16,000+ promoters through my newsletter. Over the past years, you can imagine that my team and I have read and heard everything that exist about making money on the Internet and creating web traffic. We had our own forums, chat rooms, we were receiving all the marketing and opportunity newsletters you can find. But even despite all we knew something was missing, business started declining. (If experts like us are shrinking, what is the chance for a newbie to succeed online? None) Nothing would do. We would jump into the newest matrix program of the week or we would promote the best selling programs with the best sales letters (and we know what will sell) ... but all we could do was work harder and harder, more and more hours each week to compete with the ever growing competition. After asking around us, in forums and newsgroups and chat rooms, it soon became obvious that webmasters are all waiting for something to happen in e-commerce. As if the Internet is ready for a new challenge. A new pulse. The next generation. Nothing will do anymore. It's always the same thing coming over and over again. The Internet gurus just can't put their finger on what would work again. 95% of the money making strategies you purchase today WILL FAIL! The other 5%, well you'd better know how to generate huge traffic, else your dead in the water… and even then, it's not like it used to be, just a few months back. The Expert Guru's with their vast knowledge and combined experience can not put their finger on what would make it work again. STEPHAN DUCHARME SUCCEEDED - HE MADE A DISCOVERY THAT WILL AFFECT EACH ONLINE BUSINESS WORLDWIDE, INCLUDING YOURS. THIS IS HUGE. THIS BREAKTHROUGH IS YOUR ONLY SOLUTION "Click Here" to get Stephan Ducharme's free e-bookMy experience has taught me there is no real mystery to earning large sums of money if you understand this one simple thing... ...it's Not What You Know, But Who You Know! So we began to search ... we didn't know for what at that moment, but one thing was sure, it had to be refreshing, a new age. We prayed for a new vision, not a continuation nor a follower. My greatest asset is my vast network of online associates. Several Weeks Ago, the angel of prosperity smiled upon me. In short, I knew someone who knew someone who discovered a secret. When I read about it, I was skeptic at first. It seemed too good to be true. I called the man himself and asked him all the questions I could think about, just to test his knowledge. Well, after only a few answers, I knew he was different. His answers were not shifty and the way he saw the Internet... well, I had never seen that side. When he explained to me the method he took to go from total obscurity up to 1 Million Visitors on his website in a matter of WEEKS, I was knocked out of my chair. The juicy part was when he had the nerve to insult my intelligence by saying that he was not even paying a dime in advertisement !!! I knew it was impossible. Well, I thought I knew better. The fact is that I WAS WRONG folks. This man sent me his step-by-step map, and in the first 24 hours, I had more than 27,468 new visitors on my site without paying a red cent in advertisement. STEPHAN IS RIGHT!!! I RECEIVED 84 $197 ORDERS WITHIN 72 HOURS! ....A personal record for me. PROFITS ARE NOW FLOODING IN from my web site again. Up till just now, I kept this for myself. I 'm about to tell you where to download this AMAZING NEW FORMULA and you are going to rake it in faster than you can count. "Click Here" to get Stephan Ducharme's free e-bookSo HERE'S WHAT HAPPENED... One evening, I was introduced to a young Canadian gentleman, Stephan Ducharme. Stephan created the run-away best seller... "HOW TO GET 1 MILLION VISITORS ON YOUR WEB SITE WITHOUT PAYING A DIME IN ADVERTISING" When I met Stephan, he had just paid cash for a Porsche and was shopping around for a Jet Airplane. I really thought I had it going on until I met Stephan. He's not some rich kid with a silver spoon in his mouth. Just a few years ago, Stephan Ducharme was cleaning carpets for a living. To make a long story short, he spent more than 10 years and paid over $187,000 of his own money researching everything there is to know about the internet and on making money. He bottled some of his discoveries into an ebook and within weeks, TEN'S OF THOUSANDS OF VISITOR'S A DAY were flooding to his web site. Stephan became a millionaire within a few short months... AND THIS WAS JUST THE BEGINNING. Stephan has just now developed a super simple KILLER FORMULA that is like nothing you've ever seen or heard of before... Stephan has just finished his long awaited, UP-DATED version THIS WEEK. A NEW GENERATION 9-STEP FORMULA ANYONE CAN USE TO MAKE A KILLING ON THE INTERNET Stephan's NEVER BEFORE SEEN 9-Step formula has only been seen and witness in action by one other person besides myself, who wrote back with this perfect 5/5 critic: "A Masterpiece of an Internet Genius" ...and I agree. See for yourself, "Click Here" to get Stephan Ducharme's free e-bookIt is set up so that anyone can apply it to MAKE A KILLING ON THE INTERNET within a matter of days. It will work in the worst of economies, and from anywhere in the world. TO APPLY IT... **You Do Not Need A Web Site **You Do Not Need A Product **You Do Not Need Knowledge or Experience to earn money with his formula. You simply apply the easy 9-Steps which comes with the same KILLER Web Site Stephan is now using to generate $1,000's every single day. It doesn't involve MLM and you do NO PERSONAL SELLING. Just apply the 9-step formula then set it lose. NO WORDS CAN EXPLAIN IT UNTIL YOU HEAR IT FOR YOURSELF I GUARANTEE it's nothing you've ever seen or heard of before. - Cory Rudl has never heard about it! - Terry Dean has never heard about it! - Dan Kennedy has never heard about it! - Mark Joyner has never heard about it! It's Completely New! It's so ahead of it's time that every single online business that does not apply it will crumble without it. "WHEN I APPLIED JUST ONE PART OF HIS NEVER BEFORE SEEN 9-STEP FORMULA, I RECEIVED 84 $197 ORDERS ON MY WEB SITE WITHIN 72 HOURS!" AS A TEST DEMONSTRATION, I'M GOING TO REVEAL IT TO YOU - RIGHT HERE, RIGHT NOW FOR FREE! You can access it by clicking this LIVE LINK: "Click Here" to get Stephan Ducharme's free e-bookThe Link will take you to an audio ebook that is an impromptu interview with the genius himself, Stephan Ducharme. The Audio eBook is titled... "MILLIONAIRE AT 31... ON THE INTERNET - LISTEN TO HOW HE'S DOING IT" By listening to it, you will see how Stephan used his "1 MILLION VISITOR" ebook and his 9-step formula to become a Millionaire virtually overnight. You will see and hear THE TRUTH about earning $1000's weekly from the internet while everyone else is struggling. WARNING: YOU ARE NOW GETTING A HIGH SECURITY CLEARANCE! THE LIVE LINK BELOW WILL AUTOMATICALLY DEACTIVATE 24 HOURS AFTER YOU'VE OPENED THIS EMAIL. Be one of the very first to get in on this amazing new Formula and Discovery. If you're ready to listen to a Millionaire speak on what's it's like, how he got there and the amazing new Formula that has made him wealthy... CLICK THIS LINK NOW: "Click Here" to get Stephan Ducharme's free e-bookAgain, you DO NOT NEED A WEB SITE to make money. YOU DO NOT NEED A PRODUCT to make money. YOU DO NOT NEED EXPERIENCE... You just need to SIT BACK, RELAX AND LISTEN TO THIS AUDIO EBOOK: "MILLIONAIRE AT 31... ON THE INTERNET - LISTEN TO HOW HE'S DOING IT" "Click Here" to get Stephan Ducharme's free e-bookA new Internet marketing age has begun. Now is your chance to catch the new wave of internet marketing before everyone else does. Click here and Discover Stephan Ducharme's Secret Formula for yourself and your family: "Click Here" to get Stephan Ducharme's free e-bookI personally recommend it and endorse it 100%, with all my reputation. Happy listening... Jodi Hans, CEO The Wealth Guide PS. Do yourself a favor. Take the next 20 minutes and listen to a 31 year old millionaire reveal in his own words how he went from 0 to 1 MILLION VISITORS paying him over 1 MILLION DOLLARS in just the past weeks. The simple 9-Step Formula Stephan Ducharme has discovered can be applied within the next few hours and you can begin earning money by the end of the week. Here's the link to his amazing audio ebook interview: Click Here to get your Free E-Book
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